As the title above, this article is to help find and choose the best forex brokers for beginners. Forex trading has been rapidly changing in recent years, which creates more and more brokers for traders and investors. Therefore, it is hard to choose your own suitable brokers, especially when you are a beginner. Here is the list of the best forex brokers for your consideration:
- Beginners get things wrong about these:
Most beginners misunderstand that demo account is their best choice, whereas, Cent and Micro account should be the best ones. Moreover, demo account could even bring bad effects to beginners.
ECN account is for experts though it is very volatile. In the other hand, beginners are not advised to use this kind of account, which may make them lose a huge amount of money. Thus, do not invest too much at this stage. About 95% beginners fail and lose money even when they get 50 to 100% or up to 10000% profit before. Therefore, it could be acceptable with the profit rate around 3 to 5%.
The release time of the news or events is significant to traders. However, beginners, due to the lack of information, often open their positions later and as a result, do not get their profit as their desires. In contrast, expert could make their decisions early with substantial information and get more profits.
- Wrong awareness of the best brokers for beginners.
Each broker is suitable for a different trader, thus, there is no best brokers for all beginners. Depending on the trading strategies, conditions, experiences… those beginners should choose their best brokers. Furthermore, the main target of beginners at this stage is to keep their damage at the lowest rate as possible and have experienced.
- A standard for choosing the most suitable brokers for beginners:
Listed below are the common standards of a suitable broker for a beginner:
- Small trading lot required
- Low deposit required
- Great local support
- Reliable brokers
- Good training and coaching program provided
Small trading lot required:
It is good if a broker just requires the low deposit (normally less than $100 for 3 months) as this is the reasonable amount of investment for beginners. Not like expert whose investment is often huge, beginners do not have to be worried much about the brokers’ credit, trading cost and quotes quality as their funds are small.
Low deposit required:
It is advised to use Micro account (from XM) and Cent account (from Exness and FBS) for beginners as they allow to deposit just a small amount ($10 for a month) to practice and trade. In addition, there is no minimum for the deposit required. The actual lot of XM is 0.00001 USD, whereas Exness and FBS have a slightly higher lot (0.0001 USD) even though the standard lot is 100000 USD.
As the forex is complicated itself, it is more difficult to understand and get familiar with the trading systems. Thus, whichever brokers, which are simple and easy, are good for the beginners. Here are some tips for beginners to start trading:
- Find and work with the simplest brokers.
- Trade with web trade or web terminal for a while, then trade MT4/MT5 later.
- Use Visa/ Master as the payment method because these are the easiest way.
Great local support:
It could be said that without any guidance, beginners can hardly join and start trading forex by themselves. Therefore, support plays an important role, especially local support. Some operations such as logging in, installing MT4, 3D security of Credit Card or even registering… do not require many techniques but they are still difficult for beginners. Supporters from local which can speak native languages are necessary and helpful in this case.
Though the credibility of a broker is the first standard for choosing a broker, for beginners, in this case, there is no worry whether it is a reliable broker or not. The fund is so small that it is no use in cheating beginners, moreover, as long as the brokers are easy and simple to work with, beginners could trade without caring much about other conditions.
Good training and coaching program provided:
In general, training courses are provided to help the customer who is mainly the beginners understand more clearly about the forex market, trading systems and also the payment systems. Sometimes, brokers ask to invest a big amount of money, which is often not good for those who just get familiar with the forex market. After the training courses, you could register an account, deposit a little money or change to better brokers.
- The best forex brokers for beginners
Here is the list of the best forex brokers in 2018 that beginners should start with:
As it could be seen, XM and Exness are in the top largest forex brokers, which means they are reliable. XM’s lowest position is 0.00001 lot, whereas, Exness is 0.0001 lot USD, which makes XM get the higher score than Exness. Further, there are many good training sessions at XM and good supports, great payment systems at Exness.
Meanwhile, FBS also has Cent account and offers the best services, supports, and payment systems. However, they just open offices in some of the countries, mostly from South East Asia such as Vietnam, Thailand, and Indonesia.
- Are demo contests for beginners?
It is mostly thought that Demo contests are all for beginners practicing. However, the participants and winners are mainly professional traders and experts. A research also shows that most of them are Chinese, Thai and Indonesian which are very skillful in using robot trading to win these contests. Their profit rate is more than 10000%, which can be reached by beginners. Thus, beginners should not focus on these contests.
- Are welcome bonus good for beginners?
Probably not. It is not easy to obtain the welcome bonus, it even takes and costs more to withdraw the winning money. In common, there are many conditions in deposit amount and also the number of lots for withdrawal, which could lead to the losses.
- What should beginners do to join in the forex market?
- Use and trade with Micro/ Cent account
- Remember not to deposit too much (less than $100 per month at the early stage)
- Learn how to manage risks and loss rate
- Do not use robot trading unless you are fully aware of its uses and effects.